[USA] [401K] I was in a settlement for a class action lawsuit involving a 401k. I just received a 1099r. Box 7 has code "7"; I am under the age to withdraw without penalty. Will i receive a penalty?

acetanilide@lemmy.world to Personal Finance@lemmy.mlEnglish · 9 months ago

Sorry for long title:

USA
in a state with no state income tax
my former employer (international corporation) messed up 401ks, resulting in class action lawsuit
settlement gave claimants <$20 each
just received a 1099r for this amount
box 7 = “7”, which means normal distribution per IRS
I am under 59.5

I don’t understand the table on the IRS website. Just wondering if there will be a penalty for this settlement “distribution” or if it is waived since it was part of a lawsuit. I usually do my taxes by myself so I don’t have anyone to ask.

You must log in or register to comment.

Chat

Personal Finance@lemmy.ml

personalfinance@lemmy.ml

Create a post

You are not logged in. However you can subscribe from another Fediverse account, for example Lemmy or Mastodon. To do this, paste the following into the search field of your instance: !personalfinance@lemmy.ml

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

Visibility: Public

This community can be federated to other instances and be posted/commented in by their users.

33 users / day
33 users / week
33 users / month
33 users / 6 months
0 local subscribers
3.57K subscribers
154 Posts
1.7K Comments
Modlog